A bill that would help Kentucky be more attractive for potential employers as well as help our small businesses has been passed by the House Standing Committee on Judiciary.

House Bill 320, sponsored by Representative Daniel Elliott (R – Danville) aligns Kentucky’s statute of limitations for employment related claims with federal law and competitor states. In Kentucky, common employment claims such as those regarding wages and hours, discrimination, and wrongful discharge in violation of public policy currently have a statute of limitations of five years.

HB 320 reduces the statute of limitations on employment claims from five years to at most three years dependent on the type of claim. This decrease would encourage those with claims to bring them forward sooner, and allow for a more expedient process.

“With this bill, we are alleviating some of the administrative burden that our small businesses are forced to deal with on a daily basis,” Elliott said. “Not only are we helping our small businesses, but we are also helping make Kentucky a more competitive and attractive place for potential employers who are considering making the commonwealth their home.

Currently, businesses must maintain all records related to their employees for at least five years. This may include but is not limited to payroll, timecards, emails, and text messages.

“If a claim is made, then it may be several years before these records are brought before a court,” said Elliot. “By that time, both parties involved are also contending with events and recollections that may have occurred upwards of sometimes eight years before anyone steps foot into a courtroom.”

This bill was passed by the House Standing Committee on Judiciary, and is now headed to the full House for consideration.

For more information regarding HB 320 as it moves through the legislative process, as well as current and past legislative measures, please visit legislature.ky.gov or click here.